You’ve seen the ads for different auto insurance companies, ranging from catchy tunes to talking animals. As creative as their approaches are, it’s more important to know how they handle claims and what is offered to each driver. In comparing auto insurance companies, some of these questions come to mind: is another company better than my current auto insurer? Are they cheaper? Do they offer more or better coverage options?
With so many companies willing, able, and almost begging to insure drivers, it’s easy to find an insurer to take you in, unless your driving history is shameful. A simple search on the Internet or in your phone book can give you prospects, as well as asking co-workers, extended family, or neighbors who they currently use, who they’ve used in the past and their experiences. Know what kind of protection you want in your policy as you do your research. If you’re unsure what to get, again ask people you trust what coverages they have and think about different accident situations you or any member on your policy could face.
Make a spreadsheet or list and site pros and cons for each company you research. Go online to their Websites or call each company and ask questions about available coverages and costs to include in your spreadsheet. You will most likely get a better, more thorough answer to your question if you call. Many companies will send you a free quote via email after you’ve given them information such as age, address, desired coverage, and accident and ticket history on their Website. Once your comparison is complete, you’ll be able to make an informed decision that is best for you.
While everyone wants to be happy with their auto insurer, everyone requires different terms to be met. Not all drivers are looking for the cheapest insurance, but to some drivers cost of the policy is the most important factor in choosing an insurer. Some are looking for additional coverage because their teen is now of driving age. Others are looking for friendlier representatives that are willing to go above and beyond to help. These are only some of the specifications policyholders want realized as they shop around for auto insurance. What are yours?
No one wants to pay more than somebody else for the same product, hence the obsession with finding the lowest rates. This is what drives the majority of auto insurance company comparisons. Lowest rates are almost always given to the best rated drivers who have the safest driving records. The older you are, the longer you’ve been driving, time between accidents or issued traffic tickets, the number of accidents or traffic tickets, the make, model and year of the vehicle you drive; these are all things that affect your rate. You can help your rate stay low by driving a non-sports vehicle that’s a few years old, and do your best to avoid traffic tickets and accidents. Don’t waste your time trying to speak with different representatives from the same company in attempt to lower the price. Each company has a set price and cannot lower it, according to the state.
Many auto insurers offer discounts for certain drivers. There are discounts available for teens who keep a certain grade point average, showing that a smart student can be a safer driver. Safety devices, such as an alarm or tracking device (low-jack) used in your car can provide a discount, as well as where your car is stored when it’s not in use. Paying for your policy in full instead of making monthly payments, or using automatic bill pay may lower your price. Meeting a safe driver “criteria” can reduce your policy price as well by checking how many traffic tickets and accidents you’ve had. Check with the companies to see what discounts are offered.
Choosing a company that has a Website will give you access to your policy any day, any time. This will allow you get estimates if you make changes to your policy, pay your bill, or make a claim online. You can also view the other coverages they offer that may be of worth to you. This convenience can alleviate some of the stress that comes from dealing with an auto insurance company, like getting placed on hold while you’re waiting for a representative to answer your questions.
Each state has a Department of Insurance. Most states publish a complaint ratio of all auto insurance companies within the state. This number is based on every 1,000 claims made. If your state doesn’t have this ratio, one idea would be to check another state’s and see what the ratios are for auto insurance companies that are also in your state.
A great company has great customer service. How are you treated by the company as a prospective (or current) customer? If a certain company was recommended to you by someone, how was that person treated by the insurer? Don’t be afraid to ask the representative questions about the coverage or the company, be it 10 questions or 100. You need to know the details before you start paying the company to insure you. You should always be treated with fairness and respect when speaking with any representative of the insurance company. They should know that you bring business to the company and as such you are a member of their team.
There are benefits to sticking with one company for a lengthy amount of time. Some auto insurance companies provide accident forgiveness for keeping a clean record over a certain period of time while you’re insured with them. Other companies may keep your rates low because you’ve been a loyal customer with a great driving record. Find out what companies offer this status by asking if there is any benefit to staying with them.
After you’ve asked your questions and have thoroughly done your research, you will be ready to make an informed decision. Make sure you meet as many of your requirements as possible so you don’t regret your decision later. Worst case scenario would be you aren’t satisfied with the company you choose, and you can always switch when your policy expires.
